Wolseley has agreed to purchase builders' merchant Brooks for €130 million subject to clearance from the the competition authorities.
Brooks is the third largest builders' merchant in Ireland and operates 18 branches in Ireland and recorded earnings of €9.4 million on sales of €195 million last year.
The price paid excludes the proceeds from a property disposal (€53 million) and net cash of €30 million, to give a net consideration paid is €:130 million.
The acquisition represents a significant expansion of Wolseley's interests in Ireland and could spur competition in the sector.
Wolseley is the world's largest distributor of heating and plumbing products, already owns the Heatmerchants plumbing and tiles business based in Athlone, trading as Tubs and Tiles.
Among the others bidders for Brooks was Heiton, the group which owns the Atlantic Homecare chain. Heiton's interest in Brooks is believed to have triggered the bid for it from Grafton, Heiton's main rival in the Irish market and the owner of Woodies DIY Stores and the builders' merchants Chadwick.